Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1.
Section 27-39 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(a) As used in this section "military facility" means any state-owned military building.

[(a)](b) The Adjutant General is charged with the responsibility for the use and maintenance of all armories, rifle ranges, reservations and other military property under the provisions for such use imposed by the statutes.
Each [armory]military facility shall be under the charge of a commissioned officer, designated by the Adjutant General, and may be [rented]leased by him as herein prescribed.
Each application for the [rental of an armory]lease of such facility shall be made to the officer in charge of such [armory] facility, who shall forward such application [, with recommendations,] to the Adjutant General, who shall approve or disapprove such application and so advise the applicant.[through such armory officer.
]The Adjutant General shall limit the lease of military facilities to military and nonprofit organizations, organizations receiving state aid and governmental agencies. Proceeds from the [rental of armories]lease of military facilities shall be paid to the Adjutant General,[and shall be by him paid promptly]who shall promptly pay such proceeds into the Treasury of the state.
The Adjutant General shall, in [state armories]military facilities where space is available, assign [quarters to camps and posts of war veterans]space to veterans' service organizations for their joint uses, subject to the regulations concerning [armories]military facilities.
[Such quarters shall be provided for in any new armory which may be built.
] Units of the armed forces of the state and [veteran]veterans' organizations [quartered in armories, or entitled by law to quarters,]jointly utilizing military facilities shall be allowed the use of the drill shed and such other portions of the building as are usually included when [armories]military facilities are leased, upon proper application through regular channels and subject to the following conditions and terms:
When no admissions are charged, [rental]the lease shall be free up to midnight on the regular meeting night of the organization making application.
If the use of the [armory]military facility is required after midnight, the regular military [rental] rate shall be charged.
At all other times and for entertainments when admissions are charged, the military [rental]rate shall be charged [units of the armed forces of the state or veteran]veterans' organizations [quartered in or entitled by law to quarters in an armory]jointly using the military facility.
Nothing in this chapter shall be construed as allowing the [rental]lease of any [armory]military facility (1) on the drill night of any active military organization stationed in the [armory]facility or in a manner that conflicts with the military usage of the facility, or [the use of any armory](2) at a reduced [rental]rate by any [veteran]veterans' organization for the purpose of conducting any athletic contest or other entertainment for which full nonmilitary [rental]rate is charged military organizations.
In no case shall any [veteran]veterans' organization be allowed use of any [armory]military facility for the purpose of subleasing.

[(b)] (c)Agricultural and other associations that receive state aid [shall]and military organizations may be allowed the use of [state armories for exhibition purposes]military facilities at a cost not exceeding the actual maintenance cost of such [armories]facilities during the period of such use.
Applications for such use [shall]may be made to the Adjutant General through the officer in charge of the [armory]military facility desired to be used.
In all cases when admission is charged, a certificate of insurance, approved by the Adjutant General, indemnifying the state against injuries to person and damage to property shall be furnished, the cost of the certificate to be in addition to the [rental]leasing or maintenance charge.
The Adjutant General may allow the use of any [state armory]military facility, without charge,[for rental,] by (1) any public or private nonprofit elementary or secondary school or any [regional community-technical college]public institution of higher education for purposes of athletic events with respect to which no admission is charged,[and] (2) the American [National] Red Cross for purposes of blood supply programs, and (3) any local, state or federal governmental agency, provided any such use does not conflict with the use of such [armory]facility for military purposes.

(d) Not later than August 1, 2007, and annually thereafter, the Adjutant General shall submit a report of the amount of proceeds received from leasing each military facility and the expenses of each such facility, for the twelve-month period ending on June thirtieth of the same year, to the Military Department, the joint standing committee of the General Assembly having cognizance of matters relating to public safety and the select committee of the General Assembly having cognizance of matters relating to veterans' affairs, in accordance with the provisions of section 11-4a.